Critical Realism and the Austrian Paradox
Martin, Adam. 2009. “Critical Realism and the Austrian Paradox,” Cambridge Journal of Economics Vol. 33, 517-31
27 Pages Posted: 25 Oct 2013
Date Written: October 22, 2013
Abstract
Austrian economics provokes mixed reactions among critical realists. It preaches methodological individualism, marginalism, and rational choice while embracing emergence, open processes, and error. The Austrian school stands paradoxically with one foot each in the mainstream marginalist tradition and heterodox social theory. I argue that this paradox can be disentangled by appeal to the fundamental distinction between the logic of choice and the logic of action. I then extend the analysis of the logic of action to the critical realist account of the basic ontology of social structures, arguing that successful retroduction of social structures depends on marginalist insights.
Keywords: Austrian Economics, Critical realism, Social ontology, Heterodox economics
JEL Classification: B41, B50, B53
Suggested Citation: Suggested Citation